Published: 15 October 2001
Analyst(s): Lisa Stone, Rebecca S Scholl
The application service provider (ASP) model continues to show a major limitation: the inability to take on the ownership of the business processes that the application is running. ASPs need to carry true responsibility and liability for their clients' business processes. At the same time, traditional business process outsourcing (BPO) is stalling because it cannot deliver the promised cost and operational benefits through highly customized engagements. BPOs need to leverage their business process expertise in a shared environment. When both models finally converge, a new generation of service will appear: the business service provider (BSP).
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